Virtual digital asset definition expanded to include tokens and NFTs, and 'transfer' replaces 'sales' for tax treatment. Section 2 of the Income-tax Act is amended to (a) recognise evidentiary forms in electronic and digital formats; (b) replace the word "sales" with ... Summary
Virtual digital asset definition expanded to include tokens and NFTs, and 'transfer' replaces 'sales' for tax treatment.
Section 2 of the Income-tax Act is amended to (a) recognise evidentiary forms in electronic and digital formats; (b) replace the word "sales" with "transfer" in clause (42C) with effect from 1 April 2021; and (c) insert clause (47A) defining virtual digital asset to include cryptographically generated information, codes, numbers or tokens (excluding Indian and foreign currency), non-fungible tokens, and other digital assets as may be specified or excluded by Central Government notification.
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